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Notes -
https://archive.ph/IHPLW
Tim Walz isn't seeking reelection.
It's been interesting watching the reaction in my various social circles as this plays out. It seems like it's rapidly coalescing into two distinct narratives depending on tribal alliance:
I don't know if either are actually true, but it's an interesting thing to watch develop in real time.
New Nick Shirley video just dropped and it's a banger: https://youtube.com/watch?v=LmIrwjKQQKc
This one is a long-form, extended interview with David, the older man from the previous video. Apparently he's been investigating this stuff for years, rather obsessively, to the point where he's lost friends and family because they just think he's some sort of crazy racist person for investigating.
It's a bit long and meandering, so it's hard to keep track of all the claims made in it. I think we'll need time to process this and investigate further. I'd like to see this written in text with sources, instead of just a long interview. But among the claims made:
So... will this lead to anything further? Tim Walz already said he won't run for reelection, but at this point I no longer think that's enough. The feds need to come purge the entire state government of Minnesota on charges of racketeering and voter fraud.
I did a lot of digging in Washington State daycares the other week. Washington has better public-facing financial tools. There is a big database of all government payouts for the last 6 months. You can go down the list of DYCF payments, stop at every company with “Home Daycare” or “Family Child Care” in their name that gets a 5-figure payout each month, cross-reference the name with the Washington State Daycare registry, and see that every single one has a Somali name as the primary contact. I must have found at least a dozen places run out of a medium-sized suburban home licensed for 12 kids that were each raking in $40,000 a month. Even assuming these were legitimate businesses running at full capacity, that would be over $3000 per child per month, for daycare, run out of someone’s basement.
Hope you continue and expand posting on this work. We need more investigators and fewer Takes.
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You can see the base payment rates for Licensed Centers from Washington's Working Connections Child Care here. Depending on exactly where you are (region map) that 40k is very possible. If you took care of 12 infants (<1 year old) for a full day, for 30 days, in King County, the state would pay you ~$41k for that month. The rates are fairly similar for licensed family homes. You can also get an increase above those base rates if your childcare entity is part of the Early Achievers program. Family Home and Center EA rates.
Here I am paying for daycare like a chump while illegals live on the dole and also get daycare for free for unlimited kids. Meanwhile actual hardworking parents have to pay their own way fully. This kind of thing is dysgenic as af.
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It’s almost scarier if it turns out these are all technically legit businesses and the government was just this bad at not getting Dutch Booked.
Sure, you could take care of your own baby like a chump, or you could let your buddy take care of your baby and do him a $3000/month solid.
I don't know how it works in America, but you can mind children out of your own home in Ireland so long as you stick to the regulations (these have been tightened up recently, before that you could mind mind kids in your own home, say for a neighbour, and they could pay you what you both agreed on, which generally would not be declared as taxable income, hence the regulating):
This now requires that childminders working out of their own home register with a local committee, undergo training, will have inspections carried out, and will need to keep records and make sure tax affairs are in order. There are small grants available, but you can't apply for government funding as such (that goes to professional and community childminding services and day cares).
Now, of course you could still pay a relative or neighbour to look after your kid with their own and nobody needs to register or undergo formal training, but if anyone is minding more than three kids not of their own family in their home for money, they have to comply with the new regulations.
What's being described in the links sounds like they were formally set up as businesses (even if de facto it's someone's home and they let the kids run around unsupervised), and of course there are always opportunities for scams and fraud, or even just "we charge parents full-whack fees, most of that goes into our pockets and what gets spent on the kids is buttons". I've heard that informally at second-hand where I work, allegedly passed on by one of the inspectors; one of the perks (for parents) of us being a community service which is not-for-profit and government-funded is that we do get inspected out the wazoo by several bodies and have to have paperwork backing up every last thing, so they keep track of what got spent where by whom on what. No real opportunity to shove 80% of funding into our own pockets, unlike private operators where (by what I was told the inspector says) you can see it when you go into the services even though they're charging parents market rates. Or to have fake kids enrolled and claim the funding, but no such kid exists (in fact, we could fill the spaces available twice over, such is demand, so no need for ghost enrolments unless you're scamming).
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Several years back there was some right-wing woman that ran a blog and realized this particular (smaller-scale) fraud. Sign up with the other SAHM down the street, "officially" you take care of the other person's baby but the state never checked, and get a nice payout for doing what you were going to do for free.
Wish I could remember her name and track that down. Alas.
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Some of them are technically legit, and the people who work in child sex crimes units will agree that it is scarier. Although, not so much because the government is getting bilked.
Yeah. Here's a lovely story that demonstrates that at least the Somalians are (allegedly) only screwing the state government, not the kids:
It is not uncommon at all. Other than the standard fare of boyfriends and stepdads, a very common scenario is that the son/brother/spouse of a woman running one of these "home child care" places just abuses several of the kids.
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Well, you could let your friend take care of your baby while you take care of your hers and each make $3000... like a chump. Or 12 people could register 12 daycares and each "take care of" all 12 babies for $33000 each.
Babies, much like tech platforms, have close to 0 marginal cost and scale nearly infinitely
Now that's American innovation
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I guess one limitation is it does have to be your "buddy" (at least, non-relative). The page describing the program has an exception so that you cannot receive subsidized childcare payments for your children during hours when you yourself are providing childcare to a child you are related to that is paid for with subsidies but it is worded kind of confusingly:
On the same page they are specific that a child's "parent" cannot be a subsidized provider but it seems like other family members could be:
Luckily the law doesn't recognize muslim polygamous marriages as "wives" !
I've seen speculation that the polygamous habits of Somalians are why this particular grift is so lucrative for them. One man with four wives worth of children could be raking in a middle-class lifestyle just watching the kids.
I don't know about the in-actuality familial habits of American Somalis to evaluate whether this is a good explaination or just made-up.
Realistically, i don't think that's the direct means of the fraud. It's just another way they form an insular, clannish community that trusts itself to do organized crime against the rest of us. Most of the daycares seem to be making up fake kids, and maybe occasionally bussing in some kids if they need evidence.
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I'm confused. I have a friend that put his kid in one of these suburban daycares (it's legit) and as far as I'm aware it's costing him thousands per month. I looked it up and they are also getting thousands per kid from the government. I know childcare is expensive, but it's not double dip into government's pocket and regular person's pocket for something like $5k total per kid expensive, so what's going on?
Again, no idea how the USA works, but there are various subsidised childcare schemes under the Irish government. Depending on your circumstances (e.g. are you lone parent, low income, etc.) and the age of the child, some parents will pay full fees and some parents will get a subsidised place (i.e. government funding for the kid while parent pays some percentage of the fee). Pre-school children are eligible for free care for 3 hours per day x 5 days per week x 38 weeks in the year. If the child stays longer, then the parents have to pay for the extra hours.
It's confusing to work out, so I'm glad I don't handle it. Parents have to register their child online and all the associated paperwork then gets processed, and the childcare service then submits how many hours a day and days a week each particular child attends. There are also ratios of how many staff to children per room, depending on age of children and how many in the room.
At the same time, the government is also recently increasing pay rates for childcare workers. So there's the juggling act of "how much do I pay the qualified staff plus running costs, versus what I can charge parents and get under funding" for operators. For the less scrupulous, that makes it a temptation to understaff the premises or hire less qualified/unqualified staff or cut corners while, let us say, maximising revenue streams. We don't have anything like the Minnesota scandal here (as yet), but that doesn't mean that some mini-scandal can't happen in future.
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At 20/days/month and 8/hrs/day, that comes out to about... $31.25/hr per kid.
I'm realizing that I genuinely have no idea what a price is for childcare.
Is that high or low?
Remember, out of that you are paying:
(1) Staff wages (including pension contributions, taxes, etc.)
(2) Running costs of the premises (heat/light/phone/insurance/maintenance, etc.) Rent as well if you don't own your own premises.
(3) Are you feeding the kids? Then the cost of buying in meals pre-cooked (if you don't prepare them on-site) or buying food to be cooked
(4) Equipment and materials for the rooms (everything from toys, mats, furniture, books, art supplies, etc.)
(5) Cleaning and hygiene supplies, anything else you can think of
(6) Unexpected expenses (oh crap, cold snap, we're running the heating all day long at full blast; yikes, the sinks in the bathrooms fell off the wall; hey, what's this leak in the roof?)
(7) Little treats: Easter eggs, Christmas presents, trips to the cinema etc.
Then after all that, if you're a private operator, make some profit.
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Staffing requirements usually put 4 infants to 1 caretaker. At a legit facility rent admin and janitorial staff wipe out even a fully subsidized package, without accounting for incidentals and capex. Probably need to hit at least 12 infants to start breaking even, and then your capex soars too. Daycares are not automatic money printers because kids are delicate and staffing is difficult.
So the easy scam is to just put pretend kids in and unqualified staff in place with fake credentials if ever interrogated. No auditor will investigate on their own and the local vote boss just says ' I will take care of it'
When the govt was not a fat cow worth milking taking care of it meant having to offer a sacrificial scalp to the other local bosses. Now the govt is this depersonalized money printer far away, and its also run by whites who are not only the enemy but also one that are self declaring the nobility of self impoverishment. Why would you deny them the opportunity to feel good.
But aren’t these payments made to an in home daycare? That is, there is no rental cost. Sure there is some capex but that’s relatively minimal. And with 12 kids, the admin shouldn’t be too bad.
Let’s say you hire three people and you handle all of the admin. You pay each helper 6k a month (72k a year). Let’s say you spend 5k on capex / insurance a month. That’s still 10k left over.
And I think those expenses are being generous.
People complain about the cost of childcare but if it's properly licensed, employs qualified staff, and is a decent place for the kids, it's expensive to run.
If it's cheap, either it's Neighbour Sally looking after her two kids and your two for money under the table in her own home, or it's not someplace you want your kids to be for hours per day.
If it's 12 kids for in-home daycare, then they are supposed to be registered and all associated admin etc. should be performed. Doing it on the cheap means shoddiness all round. Don't state old age homes in the USA have terrible reputations, precisely because it is done on the cheap?
Looking it up online, for the USA it depends on which state the premises is located in, but:
In California, for example, you can have 14 children in your home if you have an assistant, but there are regulations around this. Paying cheap rates to unqualified staff and skimping on insurance etc. is not going to work unless you're doing all this under the table or are very, very sure you will never be inspected to make sure you're compliant, and that no parent is going to complain:
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Checking staff genuinely have the paper qualifications they are supposed to have is very easy and the government does in fact do it if it isn't deliberately tolerating fraud. Part of the problem with non-fraudulent daycare costs is that the IQ floor for getting the paper qualifications is higher than the IQ floor for keeping a 1-year-old alive, so a system which tries to pay the going rate for keeping a 1-year old alive can't hire staff with the legally-required paper qualifications.
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Depends on the age of the child and the market in question. For late preschoolers in red states(where there are few government subsidies to distort the market) thats very high; for younger kids- especially babies- it might be average, especially in a blue state where the government subsidizes demand.
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AI is telling me that staff to kid ratio in my state and in the kid's age group is 1 to 12, so one staff generates $375/hr. Without looking it up, I know for a fact staff are not taking even third of that in their pocket. I know there's a lot more expenses going into this beyond just paying staff, but it's a home daycare for a few dozens of preschool kids that requires parents to even pack their lunch and its clearing $100k/m+ in revenue from both government and customers. Why are stay-at-home moms not coordinating setting up their own 'private daycares' and rack in thousands from the government? Sounds like an easy solution to the question of whether the mom should quit her job to raise the kid.
What insurance premiums are they paying? What is their average utility bill for electricity, for heating, for water, etc.? Are they paying rent on the premises? Staff are not getting one third of the $375/hr in take-home pay, but have you considered the gross pay not the net (which includes tax etc.)? Maybe US taxes work differently and there isn't the equivalent of PAYE, but employers must have to pay payroll taxes of some sort. That's the minimum staff ratio, but in practice you would want to have 2 to 12 (so e.g. if one staff member is dealing with taking kids to the bathroom, or on a break, there's someone in the room looking after the rest of the kids). Parents have to provide packed lunches, but does the daycare provide snacks and drinks (something that can be part of regulations, though if it really is run out of someone's home, maybe not required)?
It's not simply a matter of "aha, here is a sackful of money that I can just cream off" unless it's a scam. And as has been noted in different comments, you can't get money from the government for looking after your own kids in your own home. If Susie and Betty and Jane arrange that Susie minds Betty's kids, Betty minds Jane's kids, and Jane minds Susie's kids so they can apply for government funding, that may not work as they'll have to explain why Susie can't mind her own kids if she can mind Betty's kids etc. It's really not just as simple as "rack in thousands from the government". You have to apply for this funding and that can mean a lot of hoops to jump through, which is why cases like Minnesota do require co-ordination and corruption to succeed on the large scale.
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I considered running a private daycare when I started motherhood but I didn't own my own home. Also the initial expenses to meet all regulations. Also 3k per kid seems off to me. Admittedly it was a few years ago but back then it was more like 2k per kid under 2 and 1k per kid above three.
Though looking at these numbers, it does sound like those would have been surmountable barriers. But I suspect there's some scamming to get to the 5k/month number.
I'm guessing the government only pays $5k/mo for special needs kids, even if they're not actually special needs.
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Seems extremely high to me. Daycare for our toddler is $90 a day, and that isn’t some ghetto “Learing Center” full of Somalians either, which I expect would be substantially cheaper.
Which is about $1900 a month, and babies are more expensive than toddlers. Seems entirely consistent with the other numbers we are seeing.
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Why would you expect it to be cheaper- I'd expect them to charge the government the highest rate it's willing to pay.
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Thanks, that's a good resource. I tried searching Ohio but couldn't find anything, mostly because they didn't have clear public-facing info for this sort of thing (and admittedly I didn't look too hard).
I really wonder though, if it's just Daycare, or how many other industries are corrupted by this sort of fraud.
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